Manufacturing
Sale of Finished Goods (COGS Recognition)
Recording the cost of the product sold to a customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Goods Sold (COGS) | Expense (+) | 5,000.00 | - |
| Finished Goods Inventory | Asset (-) | - | 5,000.00 |
đź’ˇ Accountant's Note
This follows the matching principle—expensing the production cost only when the revenue is earned.
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